5 November 2008
Nairobi — Farmers are likely to benefit from an input credit deal signed by Equity Bank and an agrochemicals firm.
The deal with Orion will see the listed bank provide loans to stockists, distributors and farmers for the purchase of farm inputs.
Even then, such beneficiaries must have a contract with the agrochemicals supplier, besides holding an account at the bank.
According to the terms of the agreement, which was launched by Orion at the ongoing Hortec 2008 exhibition for the horticulture and floriculture businesses at KICC, Nairobi, applicants will only be considered once they get Orion's nod on creditworthiness besides meeting the bank's own internal borrowing requirements.
Initially targeted at farmers in Central and Rift Valley provinces, the loans' tenures will run parallel to the crop cycle and will attract a 10 per cent annual interest while the credit will be spread for as much as three years.
The input financing is intended for the purchase of fertilizers, seeds, agrochemicals and farming equipment.
"We will continue to adhere to FAO (Food and Agriculture Organisation guidelines on delivery and use of pesticides. Our staffers have the knowledge to impart the necessary skills to farmers," said Orion director for marketing and communications Naphtali Mureithi.
Orion had what it took to make the venture successful owing to its track record in the agrochemical industry and innovation.
Input finance has become a major issue among Kenyan farmers. There has been a strong lobby for direct government subsidies.
Equity, the government and Agra (Alliance for a Green Revolution in Africa) already run a programme called Kilimo Biashara, which gives loans directly to farmers for the purchase of inputs.
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